Coal-rich Mongolia aims to boost China trade ties despite dependence risk - Tradelink Publications
Mongoliahopes to boost trade by more than a tenth this year withChina, the biggest destination for its exports ofcoaland minerals, setting a target that will further boost economic dependence on its giant. . .
Mongoliahopes to boost trade by more than a tenth this year withChina, the biggest destination for its exports ofcoaland minerals, setting a target that will further boost economic dependence on its giant neighbour. Two-way trade is expected to reach $20-billion this year, PresidentUkhnaaKhurelsukhtold Chinese Foreign MinisterWangYiinUlaanbaatar, the capital, over the weekend, on the latter’s first visit in nearly four years. That represents a jump of more than 10% from 2025, despite the Iran war constraining the economic outlook for the world’s second biggest economy at a time of languishing domestic demand. Two-way trade fell to $17. 7-billion last year from $18. 3-billion in 2024, Chinese customs data shows. In a joint statement on Monday, the neighbours agreed to boost economic and trade ties, but gave no specific target ontrade. Every 1% of growth inChina‘s economy can drive an increase of 4% inMongolia‘s exports and boost its economic growth by 0. 6%, Wang told a press conference on Saturday after meeting his Mongolian counterpart, citing estimates by international bodies. “The trade momentum is quite positive,” saidXuTianchen, senior analyst at theEconomist Intelligence Unit. “Mongolia‘scopperoutput is rising, andChinastands ready to take it. ”China‘s demand for Mongoliancoalis also likely to grow, he said, after aminingdisaster killed 82 people in northernShanxi, putting pressure on domesticcoalsupplies. LandlockedMongolia, sandwiched betweenChinaand Russia, exported more than 80-million tons ofcoallast year, almost all to its southern neighbour, Chinese customs data shows. Connectivity will be further boosted by a second cross-border railway link now being built between the countries, Wang said. “All eyes are on the completion of the Gashuunsukhait-Gantsmot border crossing railway, which will facilitate trade even further,” added Xu. Chinawill supply one-million doses of vaccine to helpMongoliatackle a recent outbreak ofFoot-and-Mouth Diseaseinitslivestock, Wang said. As ties grow, Khurelsukh pledged thatMongoliawould refrain from any actions that harmChina‘s interests, regardless ofrelations with third countries.